Below are the reasons by Yee Kok Siong elaborating why cryptocurrency is the best high growth investment
1) High Returns, High Risk Option
Cryptocurrency can be used for investment through three ways:
Holding on to Cryptocurrency: The cryptocurrency rates have increased multiple times over last 10 years. It came into existence in the year 2009 and the last five years have seen a lot of traction on the prices. If you are wary of trading, you can just buy cryptocurrency and hold on to this investment. This is akin to buying gold as an investment. However, take tiny steps and invest a small amount of money to begin with. You can sell your cryptocoins later for a higher price and reap in the benefits. However, make sure you keep your coins in an encrypted wallet like the one provided by Indus Coin to keep it secure from hackers or Trojans.
Trading: Trading literally means buying cryptocoins at a less price and selling it at a higher price. The prices of cryptocurrency are determined by the demand and supply mechanism. You need to constantly keep a track of your investment while indulging in trading.
Investing in Bitcoin mining: Mining of Bitcoins means that you are funding the miners or the companies who are engaged in solving blockchains to extract cryptocoins. Once these are generated, you get your share as per the terms and conditions agreed upon at the time of investment.
2) Trends are Positive
If you look at the trends of growth of cryptocurrency as an investment option, these are extremely positive. The year 2017 saw the cryptocurrency market surging to 1200%. This means that at the beginning of the year 2017, these digital assets were pegged at $17.7 billion. At the end of 2017, this figure stood at $230.9 billion. This has been due to the increasing interest of both retail and institutional investors with some big names in the business also opting for this investment.
The cryptocurrency market has also increased and ICOs (Initial Coin Offerings) made by many of the cryptocurrency exchanges have added more people and companies in the investor list. These trends are so far extremely positive although the risk remains.
3) It is a Scarce Resource
Cryptocurrency is a scarce resource. If we consider Bitcoin which is the oldest cryptocurrency in the market, then it would be interesting to note that there are only 21 million Bitcoins that can be mined at an overall level.
The blockchains created by Satoshi Nakamoto are built in such a manner that there is a limit attached to it. Each mining cycle produces an 'x' number of cryptocoins and every four to five years, this pool gets difficult to mine and the cryptocoins generated become 'x/2'. This means that not just it is a scarce resource, the mining will keep getting complex and the output will get reduced. At that times, this will be a prized possession to hold.
4) It is Immune to Any Monetary Policy
Cryptocurrencies are not bound by any monetary policy and are totally devoid of concepts like inflation and recession. Investing in digital currency means that you do not have to worry about the impact that Government's policies can make on currency. The only concern is that if any of the Government bans this as an accepted method of payment. This is the only news that you have to really watch out for.
5) Exit Options are Always Available
As easy as it is to get into the business of investing cryptocoins, exiting out of this is also very simple. Cryptocurrency is much in demand and you can always sell your cryptocoins at any point of time and exit out. Unlike policies determined by financial institutions, there is no penalty or lock-in period for investment of cryptocurrency. This hassle free investment basically means that you have nothing to lose even if you exit out early.